Accounting. Organizations andSocie!y, Vol. 13, No. 3, pp. 251-261, 1988. 0361-3682/88 $3.00+.

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Printed in Great Britain Pergamon Press plc

FINANCIAL ACCOUNTING: IN COMMUNICATING REALITY, WE CONSTRUCT

REALITY*

RUTH D. H I N E S
Macquarie University, N.S. W., Australia

At first I saw Don Juan simply as a rather peculiar man who knew a great deal.., but the people.., believed
that he had some sort of "secret knowledge", that he was a "brujo". The Spanish word brujo means, in
English... sorcerer. It connotes essentially a person who has extraordinary.., powers.
I had known Don Juan for a whole year before he took me into his confidence. One day he explained that
he possessed a certain knowledge that he had learned from a teacher, a "benefactor" as he called him, who
had directed him in a kind of apprenticeship. Don Juan had, in turn, chosen me to serve as his apprentice,
but he warned me that I would have to make a very deep commitment and that the training was long and
arduous...
My field notes disclose the subjective version of what I perceived while undergoing the experience. That
version is presented h e r e . . .
My field notes also reveal the content of Don Juan's system of beliefs. I have condensed long pages of
questions and answers between Don Juan and myself in order to avoid reproducing the repetitiveness of
conversation... (The Teachings ofDonJuan~.A Yaqui Way of Knowledge, Carlos Castaneda, 1970, pp. 14,
24, 25).

We stood together, looking down into the valley " W e l l , I r e a l l y o n l y m e a n t w h a t lies w i t h i n t h e

below...t fence."
"What do you see before you?" said the Master. "Yes I k n o w y o u did, b u t again, o n l y p a r t o f
"Well, in the valley, I see buildings of various t h a t is t h e o r g a n i z a t i o n . . . A n d i n d e e d , p a r t o f
kinds, spread over a large area, and surrounded t h e o t h e r is also t h e o r g a n i z a t i o n . "
by a fence. There are people inside the fence. A " P a r t o f t h e o t h e r ? Y o u m e a n , w h a t lies o u t s i d e
river runs through the valley, and through the the fence -- the hills and trees -- they are also
area enclosed by the fence. And outside the p a r t o f t h e o r g a n i z a t i o n ? "2
f e n c e t h e r e a r e t r e e s , u p t h e s i d e s o f t h e valley, " N o t t h e h i l l s a n d t r e e s , as s u c h , b u t . . . W e
all a r o u n d , as far as t h e e y e c a n s e e . " must not get out of our depth before we can
" A n d d o y o u k n o w w h a t it is, t h a t y o u see?" swim. The hills and trees must wait."
It s e e m e d t o m e t h a t I h a d a c c u r a t e l y , t h o u g h "Well then, which parts, within the fence, are
b r i e f l y , d e s c r i b e d w h a t I saw. B u t I w a s u s e d t o part of the organization? I suppose the buildings
s u c h q u e s t i o n s f r o m t h e M a s t e r . It w a s h i s w a y o f a n d l a n d a r e p a r t o f it?"
guiding me along the path of the special know- " I n all l i k e l i h o o d , t h e y are. B u t n o t n e c e s -
ledge which he possessed, and which he had de- sarily."
c i d e d t o i m p a r t t o m e , as h i s a p p r e n t i c e . I re- " W h a t a b o u t t h e r i v e r ? It m u s t b e b e c a u s e I
called our previous conversation: c a n s e e t h a t t h e r i v e r w a t e r is b e i n g u s e d b y t h e
"Is t h i s a n ' o r g a n i z a t i o n ' , p e r h a p s ? " organization. I can see..."
H e s m i l e d faintly, a n d l o o k e d a t t h e far hills: "Yes y o u a r e r i g h t . T h e r i v e r s u p p l i e s w a t e r
" T h a t is g o o d , y o u r e c a l l o u r last l e s s o n . Y o u vital for the manufacturing processes of the
a r e p a r t i a l l y r i g h t . P a r t o f w h a t y o u s e e is a n organization, but nevertheless, the water of the
organization." r i v e r is n o t c o n s i d e r e d t o b e p a r t o f t h e o r g a n i z a -

•The author thanks the anonymous reviewers and Michael Miko for their helpful comments.

251
 252 RUTHD. HINES

t i o n . . . Unless of c o u r s e the o r g a n i z a t i o n is sold. " W h e n it is real-ized?"

If it is sold, t h e n w h o e v e r p u r c h a s e s the organi- "That's right. W e r e c o g n i z e r e v e n u e w h e n it is
zation will pay for the w a t e r of the river, and, it realized: that's w h a t w e say - - 'we r e c o g n i z e re-
b e i n g thus recognized, will b e c o m e part of the v e n u e and gains w h e n they are realized'. W e
organization. It will be n a m e d 'Goodwill'." create the i m p r e s s i o n that they do n o t exist, and
"The river - - the w a t e r - - will be called that suddenly, they b e c o m e real, a n d w e recog-
'Goodwill'? G o o d Heavens. Is t h e r e a n y t h i n g else nize t h e m as such. But of course, w e make t h e m
of this nature?" real, b y r e c o g n i z i n g t h e m as real. 3 Until w e rec-
"What do y o u m e a n 'of this nature'? O n e m u s t ognize them, they are, for just a b o u t all i n t e n t s
b e clear in o n e ' s o w n m i n d , as to w h a t it is pre- a n d purposes, n o t real."
cisely that is b e i n g questioned." "But a r e n ' t they there? I mean, if they are
"I mean, ugh, in a sense, the river does n o t there..."
exist..." "Again, clarity of mind. What do you m e a n
I h u r r i e d l y reflected o n past conversations. I exactly w h e n y o u say, 'if they are there'?"
did n o t w a n t to appear to b e stupid before the "I mean, if they exist, then, e v e n w i t h o u t y o u
Master. I tried to c o n v e y m y q u e s t i o n a c c o r d i n g r e c o g n i z i n g them, they are real."
to the language w h i c h c o m m u n i c a t e d his special "Oh yes, that is o u r everyday c o n c e p t of real-
knowledge: ity alright. But everyday c o n c e p t s are a cover-up.
"The river - - the w a t e r in it - - o n l y b e c o m e s Did 'black holes' a n d ' s u b a t o m i c particles' exist,
an 'asset' of the organization, w h e n the w h o l e before physicists c r e a t e d the idea of them? 4 Of
organization is sold. At that point, the p o i n t of c o u r s e they did not!"
sale, it b e c o m e s part of the organization's reality. "But..."
Like a miracle. Is t h e r e a n y t h i n g e l s e . . , of that "Oh yes, I know, y o u ' r e a literal sort of chap;
nature?" y o u will b e a fine master. But e v e n w i t h y o u r lit-
"Excellent, y o u see w h a t clarity of m i n d can eral m i n d , do you b e l i e v e e v e r y t h i n g y o u read
achieve? You are a fine apprentice. You will b e a a n d hear? What a b o u t the newspaper? Are all
Master y o u r s e l f someday. A n d in a n s w e r to y o u r those stories real?"
question, e v e r y t h i n g is of this nature. "Well, I s u p p o s e it d e p e n d s w h a t y o u m e a n b y
Now, that p o i n t in time, w h e n s o m e t h i n g be- 'real'. I mean, I think, s o m e of t h e m are true."
c o m e s real, w h e n w e recognize the reality of "Unbiased, neutral, do y o u mean?"
something, w h a t p o i n t in time might that b e "Well, yes."
called, do y o u imagine?" "Do y o u seriously t h i n k that a n y t h i n g in this
"Well, I w o u l d call it the p o i n t ofreal-ization, w o r l d c a n b e 'neutral'?"
since that is the p o i n t at w h i c h things b e c o m e "Yes, well, ugh, I ' m n o t sure .... "
real." "Do you t h i n k t h e r e ever was a n e w s story that
"And so w e do. That is just w h a t w e do. Do y o u took e v e r y t h i n g into a c c o u n t ; left o u t n o t h i n g ;
see, are y o u b e g i n n i n g to see, w h e r e o u r p o w e r gave the full picture?"
lies?" "It d e p e n d s w h a t y o u m e a n b y 'the full pic-
''Yes, I t h i n k I am b e g i n n i n g to see. I t h i n k I un- ture'."
d e r s t a n d a b o u t the water. What o t h e r things are "What do you m e a n by it?"
real-ized at certain p o i n t s in time, w h i c h you "Agh, I d o n ' t really know. Ha. Ha."
decide?" ''Yes, good, n o w w e are g e t t i n g s o m e w h e r e .
"Oh everything, everything! W e d e c i d e every- You ' d o n ' t know'! W h o k n o w s w h a t 'the full pic-
thing. R e m e m b e r w e talked a b o u t r e v e n u e : re- ture' is? W h o knows? H o w do you k n o w n w h e n
v e n u e less e x p e n s e s equals profit. Remember?" you have the full picture?
''Yes." Having the full p i c t u r e - - a true, a fair v i e w of
" W h e n do you t h i n k s o m e t h i n g b e c o m e s re- s o m e t h i n g - - d e p e n d s o n p e o p l e d e c i d i n g that
venue?" they have the full picture. Sometimes, they later
 FINANCIALACCOUNTINGAND REALITY 253

d e c i d e t h e y d i d n o t h a v e t h e full p i c t u r e , a n d t h e organization. T h e y m e r e l y h a v e to b e
t h e n t h e r e are r e c r i m i n a t i o n s : w h y d i d n ' t w e g e t t h o u g h t o f as having d o n e so. See t h o s e b i g con-
t h e rest o f t h e p i c t u r e ; o r a different p i c t u r e ? It tainers d o w n there, b e s i d e t h e s q u a r e b u i l d i n g
can g o o n and on. P e o p l e feel e n t i t l e d to reality. o v e r o n t h e right? T h o s e g o o d s m a y w e l l b e
Did y o u s t u d y h i s t o r y at school?" sold."
"Yes, I did." "So, y o u are saying, g o o d s are 'sold', w h e n t h e y
"History c r e a t e s p a s t r e a l i t y for us. T h e p a s t is are c o n c e i v e d of, as having left, t h e i d e a o f ' t h e
always b e i n g r e i n t e r p r e t e d . T h e y are always re- organization'?"
w r i t i n g t h e h i s t o r y books. T h e y d o n ' t tell y o u "Very good."
that at s c h o o l though, d o they? W h a t a b o u t his- " H o w d o y o u d e t e r m i n e w h e n to t h i n k o f
t o r y in y o u r o w n time: Vietnam, for e x a m p l e ? t h e m as having left t h e organization?"
You m u s t admit, a c c o u n t s have c h a n g e d o v e r "Oh it varies. W e h a v e a lot o f d i s c r e t i o n here.
t h e years.5 O r w h a t a b o u t t h e Bible, is that 'real'?" It is all a r b i t r a r y o f c o u r s e , b u t w e take into
"I d o see w h a t y o u are saying, b u t s c i e n c e is a c c o u n t v a r i o u s factors. You c a n n o t just arbitrar-
different. It d e s c r i b e s real things, p h y s i c a l ily define t h e s e things: t h e y h a v e to b e s e e n to b e
things." the product of experience, judgement."
"No, m y boy, y o u are q u i t e w r o n g . A b l a c k "Why?"
h o l e - - m y d e a r fellow, w h a t is it e x a c t l y that t h e "Well, o t h e r w i s e , a n y o n e c o u l d d o t h e job."
p h y s i c i s t s say is a " b l a c k hole"? C e r t a i n areas in "Oh y e s . . . But, agh, I mean, s u r e l y . . . ? "
t h e H e a v e n s p r o d u c e c e r t a i n b e w i l d e r i n g ex- "Yes I know, it's confusing. Let m e try a n d ex-
p e r i m e n t a l r e s u l t s . . . That is all. A n d t h e s e areas plain: t h e r e is n o s u c h t h i n g as t h e truth, b u t
are c a l l e d ' b l a c k holes'. By n a m i n g them, w e t h e r e is such a t h i n g as s t r e t c h i n g t h e t r u t h t o o
suggest that w e have n a m e d , ' d i s c o v e r e d ' , s o m e - far. T h e r e is a reality: t h e r e ' s s o m e t h i n g t h e r e
thing: s o m e t h i n g real. But m y boy, ' b l a c k holes'? alright. Do n o t t h i n k for a m i n u t e that I am saying
Even y o u m u s t see. w e i m a g i n e t h e w o r l d ! O h no, n o t at all! T h e
Black h o l e s are an idea, a m e t a p h o r , a c o n c e p t . b r i c k s are there, and t h e p e o p l e , and t h o s e con-
Like atoms. Like e l e c t r o n s . Like organizations! tainers - - n o d o u b t a b o u t it. But t h e organiza-
T h e s e things h e l p s t r u c t u r e o u r lives. Ideas. 6 tion, a n d t h e m o s t m i n u t e p a r t i c l e s in t h e bricks,
W h e r e w o u l d w e be, w i t h o u t ideas? But I a m a n d r e v e n u e , well, w e c r e a t e them!
g o i n g m u c h t o o fast. W h e r e w e r e we?" Now, b a c k to w h e r e w e w e r e : ' p o i n t o f recog-
" W e w e r e talking a b o u t r e v e n u e a n d gains, nition', being, p o i n t o f real-ization, being, some-
a n d t h e i r p o i n t o f r e c o g n i t i o n . . , a n d realiza- times, b u t n o t necessarily, p o i n t o f sale. T h e r e
tion." are n u m e r o u s possibilities. S o m e t i m e s w e rec-
O h yes, that's right. ' W e r e c o g n i z e r e v e n u e o g n i z e r e v e n u e w h e n t h e g o o d s are c o m p l e t e d ;
w h e n it is realized'. By n a m i n g it ' r e v e n u e ' , it be- s o m e t i m e s w h e n t h e y are p a r t l y c o m p l e t e d ;
c o m e s r e v e n u e . . , just like t h e b l a c k holes." s o m e t i m e s w h e n t h e c u s t o m e r is invoiced; o r
" H o w d o y o u k n o w w h e n to r e c o g n i z e re- e v e n w h e n h e t e l e p h o n e s and p l a c e s an o r d e r ; o r
venue? O r s h o u l d I say, h o w d o y o u k n o w w h e n s o m e t i m e s w h e n he is billed; o r w h e n h e pays.
to 'realize' revenue?" A n d e v e n t h e s e are n o t clear-cut. W h e n is a
" N o w y o u ' r e g e t t i n g i t . . . R e v e n u e is g e n e r - b u i l d i n g 'finished', for e x a m p l e ? W h a t p e r c e n t -
ally r e c o g n i z e d - - c o n s i d e r e d to b e r e a l i z e d - - age o f a b u i l d i n g - o r a s h e e p - - is ' c o m p l e t e d ' ?
at t h e p o i n t o f sale, b u t n o t always." W h e n d o e s a c u s t o m e r 'pay': w h e n his c h e q u e is
" W h y at t h e p o i n t o f sale?" r e c e i v e d ; w h e n it is h o n o u r e d ? "
"This is w h e n g o o d s are c o n s i d e r e d to leave I felt o v e r w h e l m e d . T h e r e was m o r e h e r e to
t h e organization, and to b e c o m e t h e p r o p e r t y o f l e a r n than I h a d imagined. T h e Master r e a d m y
s o m e o n e else." thoughts:
" W h e n t h e g o o d s are taken away, y o u mean?" "It is all a bit c o n f u s i n g n o w , b u t d o n o t b e con-
"No. T h e g o o d s d o n o t have to actually leave c e r n e d , y o u will u n d e r s t a n d . "
254 RUTHD. HINES

"Could w e talk a b o u t what lies o u t s i d e the ughm, p e r h a p s an a c c o u n t a n t w o u l d say it is

organization, b u t is part of it?" not."
"Lad, y o u are n o t m a k i n g sense." "It is n o t quite as simple as that. W e do n o t
"I mean, y o u said there w e r e things o u t s i d e always define reality differently to the c o m m o n
the fence, w h i c h w e r e part of the organization." c o n c e p t i o n . Q u i t e the contrary. In fact w e play
"Oh yes. Now, do n o t c o n f u s e the b o u n d a r y of such a large part in c r e a t i n g the c o m m o n con-
the organization, w i t h the fence - - that is just to ception, and w e have so largely a b s o r b e d the
keep p e o p l e out. You m u s t n o t think of the c o m m o n c o n c e p t i o n s into o u r o w n thinking,
organization as e n d i n g at the fence - - that is that o n e cannot, by any means, assume that o u r
c o m m o n sense. That is the w a y lay p e o p l e t h i n k definitions are always the c o n t r a r y of lay defini-
of the organization. R e m e m b e r , w e are profes- tions. In this case, you are right in saying that
sionals. most p e o p l e w o u l d see the p o l l u t i o n as being, in
Now, y o u see all these trees? The land o n s o m e way or another, part of the organization.
w h i c h they stand, b e l o n g s to the g o v e r n m e n t , T h e y used n o t to. T h e y used to b e q u i t e u n a w a r e
b u t the organization is able to take trees from of it. But since they have b e c o m e aware of it, a n d
this forest for its p a p e r manufacturing. That's a b e c a u s e they are b e g i n n i n g to see it as b e i n g the
curly one, isn't it? H o w w o u l d y o u a c c o u n t for responsibility of the organization, w e inevitably
that?" m u s t do so, in time. O n c e the organization be-
"Well, I s u p p o s e the land is n o t an asset of the c o m e s a c c o u n t a b l e for something, w e m u s t
organization, n o t part of it, so as to speak, b u t the a c c o u n t for it, s o o n e r or later."
trees are, for as long as the organization is "I'm still n o t sure I u n d e r s t a n d . Before, y o u
allowed to take t h e m . . . said y o u d o n ' t have to b e c o n s t r a i n e d b y ordi-
But it d o e s n ' t make sense to e x c l u d e the land nary p e o p l e ' s notions."
and i n c l u d e the trees - - the trees are part of the "That's the paradox. That's w h e r e w e walk a
land...?" very thin line. W e c o m m u n i c a t e reality: that is
"'In reality', y o u w e r e a b o u t to say?" the myth; that is w h a t p e o p l e believe. It is e v e n
I felt stupid. what m o s t of us believe. And, in a sense, w e do
" R e m e m b e r , w e are c r e a t i n g reality. W e do c o m m u n i c a t e reality. T h e r e is s o m e t h i n g there:
n o t have to be c o n s t r a i n e d b y the everyday w a y bricks and p e o p l e a n d so on. And the organiza-
of t h i n k i n g - - it is just a way of thinking, c a n ' t tion can, say, b e ' d o i n g well', or ' d o i n g badly', in
y o u see? As o r d i n a r y people, w e arbitrarily com- w h a t e v e r sense y o u take that to mean. And it is
bine, and define, and add, and s u b t r a c t things o u r job to c o n v e y it. But w h a t is 'the full picture'?
from o u r p i c t u r e of reality. As professional T h e r e is n o full picture. W e make the picture. 7
people, w e arbitrarily c o m b i n e , a n d define, and That is w h a t gives us o u r power: people think
add, and s u b t r a c t things, in a different w a y to the a n d act on the basis o f thatpicture! Do y o u see?
everyday way: that is w h a t differentiates us. Are y o u b e g i n n i n g to see?"
T h e fence does n o t designate the organiza- " Y e s . . . I t h i n k I am b e g i n n i n g to see. My
tion. W e do that. W e designate it, b y d e c i d i n g word, there's a lot m o r e to it than I r e a l i z e d . . .
w h a t things will be part of the organization, and R e a l - i z e d . . . Ha, ha, yes I see, 'realized': w e say it
by d e c i d i n g h o w big or small these things will all the time, d o n ' t we? W e t h i n k w e have grasped
be: ' r e c o g n i t i o n ' and ' m e a s u r e m e n t ' . . . C o m e reality, w h e n w e 'realize'; b u t really, ha, ha - -
over h e r e . . . You see that m u r k y b r o w n in the t h e r e I go again, 'really' - - b u t w e have n o t so
river, d o w n s t r e a m of the plant? What w o u l d y o u m u c h grasped reality, as c r e a t e d it, by t h i n k i n g of
say of that?" it in a c e r t a i n way, and treating it in that way!"
"It's pollution." "Good, good, well done! Now, m o s t things, w e
''Yes, b u t do y o u t h i n k it is part of the organiza- are free to define, and shape, a n d mould, and
tion? N o w try to forget a b o u t the fence." measure, w i t h o u t interference. But w h e n p e o p l e
"Well, o r d i n a r y p e o p l e w o u l d say it i s . . . So, have a p r e c o n c e i v e d n o t i o n of what reality is,
 FINANCIALACCOUNTINGAND REALITY 255

well, w e c a n ' t afford to g o against it!" ducts. T h e y m i g h t b u y o t h e r things instead. A n d

" W h y not?" that, w o u l d c h a n g e everything. Everything!
"Because, w e are s u p p o s e d to c o m m u n i c a t e P e o p l e b u y i n g less o f this, m o r e o f that; i n v e s t i n g
reality: if p e o p l e have a c e r t a i n c o n c e p t i o n o f less in this, m o r e in that. N o t h i n g w o u l d b e t h e
reality, t h e n naturally, w e m u s t r e f l e c t that. same: s o m e p e o p l e w o u l d b e b e t t e r off, s o m e
O t h e r w i s e p e o p l e will lose faith in us." w o r s e off; w e w o u l d have less o f s o m e goods,
"What h a p p e n s then?" m o r e o f others. It w o u l d c h a n g e w h a t w e call t h e
"Oh, it's terrible, terrible. Hearings, l o b b y i n g , ' i n c o m e d i s t r i b u t i o n ' a n d ' r e s o u r c e a l l o c a t i o n ' in
investigations, criticisms, p u b l i c i n t e r v e n t i o n . o u r society. C h a n g i n g that is major; that is social
W e s e e m to g e t m o r e a n d m o r e o f it t h e s e change.
d a y s . . . But, w e w e r e talking a b o u t t h e pollu- That p o l l u t i o n , for e x a m p l e : w h a t if that is in-
tion." c l u d e d in t h e p i c t u r e ? It w o u l d n o t h e l p that
"Yes, I w a s w o n d e r i n g , h o w c o u l d it b e organization, w o u l d it? T h e m o r e g o o d s it p r o -
'measured'?" duced, the more pollution. Not a pretty picture.
" W e will c o m e u p w i t h s o m e t h i n g . W e always It w o u l d have c o n s e q u e n c e s . "
do. No different to t h e b r i c k s really, o r t h e "And y o u c o u l d d o all that! It's incredible!"
people." "Well, w e c o u l d n o t d o s o m e t h i n g as big as
" H o w are t h e b u i l d i n g s measured?" that o n o u r own. Social c h a n g e . . , w e c o u l d n o t
"At t h e a m o u n t that t h e y c o s t t h e organiza- c h a n g e t h e p i c t u r e as radically as that, and g e t
tion, generally, a l t h o u g h t h e r e are o t h e r ways." a w a y w i t h it. But t h e day will c o m e , w h e n p e o p l e
"And t h e people?" so c l e a r l y 'see' p o l l u t i o n as p a r t o f the organiza-
"The same." tion, that w e will have to i n c l u d e it in t h e pic-
"Isn't that a bit strange?" ture. A n d t h e r e will b e c o n s e q u e n c e s . . .
" W h y so?" So y o u see, it's n o t w e a l o n e that c r e a t e reality.
"Well, b r i c k s a n d p e o p l e , m e a s u r i n g t h e m t h e E v e r y o n e d o e s it. But as official C o m m u n i c a t o r s
s a m e way?" o f Reality, w e have m o r e p o w e r than most."
"Oh, I see w h a t y o u m e a n . . . Well, t h e r e are " H m m . . . . It's v e r y i n t e r e s t i n g . . . . So, ah, if that
p e o p l e - - radical t y p e s - - w h o say w e d e v a l u e h a p p e n s , I m e a n if p e o p l e c o m e to 'real-ize' pol-
things, like p e o p l e , b y m e a s u r i n g t h e m this way. l u t i o n as part o f ' t h e organization', and y o u have
T h e y h a t e t h e w h o l e system, I m e a n t h e w h o l e to ' m e a s u r e ' t h e p o l l u t i o n , I d o n ' t s e e h o w y o u
thing: reality, as w e p e r p e t u a t e it. T h e y say w e can d o it? It d o e s n ' t c o s t t h e o r g a n i z a t i o n any-
a r e c o n s e r v a t i v e s , d e f i n i n g a n d m e a s u r i n g things thing. O t h e r p e o p l e pay."
t h e w a y t h e y always h a v e b e e n , a n d n o t t r y i n g to " W e will w o r k s o m e t h i n g out. G e t t i n g c o n s e n -
m a k e it any b e t t e r , n o t trying to m a k e any sus o n it though, that's t h e p r o b l e m . "
changes. But w h e r e w o u l d w e b e if w e t r i e d to "I s u p p o s e p e o p l e d o n ' t t h i n k its real - - t h e
o v e r t h r o w t h e system? W e a r e p a r t o f t h e sys- real m e a s u r e m e n t , t h e t r u e o n e - - unless t h e y
tem... c a n see y o u all a g r e e a b o u t it."
You see, if w e v a l u e d p e o p l e any differently to "That's right. That is right. It is v e r y b a d for
t h e w a y that w e do, say w e t h o u g h t this way: ' t h e p e o p l e to s e e us q u a r r e l l i n g a m o n g s t ourselves.
m o r e an o r g a n i z a t i o n p r o d u c e s , t h e m o r e bor- It l o w e r s t h e i r c o n f i d e n c e . It l o w e r s o u r o w n
ing, injurious, and so on, it is for t h e w o r k e r s ' . c o n f i d e n c e too."
A n d then, if w e w e r e to take this b o r e d o m , o r in- "Yes, I s u p p o s e p e o p l e w o u l d n ' t b e h a p p y to
juriousness, into account, t h e n p e o p l e w o u l d see that t h e i r w o r l d is s o . . . tenuous. I feel un-
e x p e c t to b e c o m p e n s a t e d for t h e s e things; a n d s e t t l e d b y all this myself."
if p e o p l e w e r e c o m p e n s a t e d for these, t h e n t h e ''Yes, t h e y n e e d us. E v e r y t h i n g w o u l d b e in a
o r g a n i z a t i o n w o u l d have to c h a r g e a h i g h e r m e s s w i t h o u t us. Just a j u m b l e . N o - o n e w o u l d
p r i c e for its p r o d u c t s . A n d at a h i g h e r p r i c e , k n o w w h e r e t h e y w e r e . H o w w o u l d that w o r k ,
p e o p l e w o u l d n o t w a n t to b u y so m a n y o f its p r o - eh?"
256 RUTH D. HINES

"Is that w h y s o m e p e o p l e have called y o u t h e "It k e e p s t h e m busy. T h e y d o n ' t interfere. 12

' h a n d m a i d e n s o f t h e status quo'?" W h e r e w o u l d w e b e if t h e w h o l e thing was un-
"Ha, h a . . . W h e r e d i d y o u h e a r that?" m a s k e d ? . . . Still, w e c o u l d d o w i t h a bit o f h e l p at
"Oh, I d o n ' t know." p r e s e n t . . . 13
"Well, it is n o t us, that t h e y call t h e hand- "Does e v e r y o n e t h i n k that way? I mean, t h e
m a i d e n s o f t h e status quo. W e just d o o u r job. It theorists, s u r e l y s o m e o f t h e m suspect?"
is t h e p e o p l e w h o m a k e u p t h e o r i e s a b o u t us. "Oh yes, s o m e o f t h e m do! But it is up-hill
T h e y d o n o t really q u e s t i o n w h a t w e do. T h e y g o i n g for them. H o w d o y o u g e t it across, that w e
take it all at face value. T h e y a d o p t t h e s a m e per- p l a y a p a r t in c r e a t i n g reality, w h e n e v e r y o n e
s p e c t i v e w e do. O u r w o r k is officially d e s i g n a t e d knows, w i t h c o n v i c t i o n , that reality exists un-
as C o m m u n i c a t i n g Reality, a n d t h e y just a c c e p t p r o b l e m a t i c a l l y , o u t there! H o w d o y o u start to
that is w h a t w e do. A c o m m u n i c a t i o n p e r s p e c - say s o m e t h i n g like that? 'Yes, yes, o f course,
tive; m e a s u r e m e n t p e r s p e c t i v e ; i n f o r m a t i o n per- t h e r e is a reality, b u t . . . ' P e o p l e d o n o t w a n t to
spective; that sort o f thing. T h e y n e v e r s u s p e c t h e a r that sort o f thing. You c a n ' t b l a m e them."
w e p l a y a r o l e in constructing t h e status quo." " N o . . . Gosh! To b e h o n e s t , I d i d n ' t realize
"Oh, I see." h o w fascinating this c o u l d be. It's really v e r y in-
"They s e e o u r j o b as a t e c h n i c a l o n e - - teresting!"
m e a s u r i n g and c o m m u n i c a t i n g reality. Like ordi- "Oh yes. It d o e s n ' t have to b e dull y o u know.
n a r y p e o p l e , t h e y t h i n k that t h e r e is a pre-exist- It all just d e p e n d s o n t h e w a y y o u l o o k at things."
ing reality, w h i c h w e reveal. T h e y e v e n say that "I've b e e n w o n d e r i n g , d o p e o p l e e v e r d e c i d e
s o m e p e o p l e c a n ' l o o k b e h i n d '8 a c c o u n t i n g n u m - that t h e a c c o u n t s o f an o r g a n i z a t i o n don't r e p r e -
bers; that t h e y c a n ' u n r a v e l '9 them. Imagine! s e n t reality?"
P e o p l e are n o t 'fooled', t h e y say. Well, I d o n ' t "Oh yes, that d o e s h a p p e n . Always e m b a r r a s -
k n o w a b o u t that! H h m m , I d o n ' t k n o w a b o u t sing. P e o p l e g e t v e r y u p s e t indeed."
that! " C o u l d y o u give m e an example?"
S o m e o f o u r m e t h o d s , a c c o r d i n g to t h e s e " C o m p a n y failures. They, are o u r b~te noire.
fellows, are 'trivial', ' c o s m e t i c ' : t h e s e m e t h o d s The accounts sometimes present a picture of a
d o n o t c o n v e y anything n e w a b o u t reality, a n d h e a l t h y organization, and then, it fails. W e n e v e r
so s o p h i s t i c a t e d p e o p l e d o n o t r e a c t to them. h e a r t h e e n d o f it! P e o p l e say: 'if this organiza-
P e o p l e w h o r e a c t to t h e s e 'arbitrary', m e t h o d s , tion's a c c o u n t s w e r e so u n t r u e , w h a t a b o u t
t h e y say, are stupid. T h e y call t h e m 'functionally o t h e r organizations?' As I said, t h e r e is n o t r u t h as
fixated'. Imagine, 'functionally f'Lxated'! O t h e r such, b u t t h e r e is s u c h a t h i n g as s t r e t c h i n g it t o o
m e t h o d s , t h e y say, are 'substantive': t h e s e far - - that is w h e n y o u get c a u g h t out.
methods carry additional information content You see, n o r m a l l y a h e a l t h y - l o o k i n g set o f
a b o u t reality, and so p e o p l e r e a c t to them. a c c o u n t s will get an o r g a n i z a t i o n t h r o u g h dif-
This, m y boy, is w h a t c a n c o m e o f n o t b e i n g ficult t i m e s . . . "
c l e a r in y o u r m i n d a b o u t w h a t reality is, a n d "Save it? Save it, d o y o u mean?"
w h a t ' i n f o r m a t i o n ' is. It n e v e r o c c u r s to t h e s e "Yes. If t h e a c c o u n t s l o o k alright - - so b e it!
chaps, that i n f o r m a t i o n plays a p a r t in c r e a t i n g W h o is g o i n g to panic? An o r g a n i z a t i o n will gen-
reality, lo erally g e t t h r o u g h r o u g h w a t e r s as l o n g as no-
Well, the theorists, p o o r c h a p s have h a d a o n e r o c k s t h e boat.
d r e a d f u l t i m e lately: s o m e o f t h e trivial m e t h o d s But if t h e a c c o u n t s suggest an o r g a n i z a t i o n is
s e e m to b e real - - t h e y have c o n s e q u e n c e s ; g o i n g to fail, so b e it! Say, w e lift w h a t w e call t h e
s o m e o f t h e real o n e s d o n o t s e e m to have any ' g o i n g - c o n c e r n ' a s s u m p t i o n , and p r e p a r e t h e
c o n s e q u e n c e s , 11 p e o p l e act as if t h e y d o n o t be- a c c o u n t s o f an o r g a n i z a t i o n o n t h e basis o f liqui-
lieve in t h e i r theories. Oh, a m e r r y dance! Still, it d a t i o n values r a t h e r than costs. W h a t d o y o u
suits us." think will happen?"
"Why?" " P e o p l e w o u l d panic, a n d t h e o r g a n i z a t i o n
 FINANCIAL ACCOUNTING AND REALITY 257

w o u l d fail." ' e c o n o m y ' , 15 w h a t e v e r y o u like, a n d o n t h e b a s i s

"Self-fulfilling p r o p h e c y . A n d p e o p l e w o u l d of that picture (not some underlying 'real' reality
b l a m e us! M a r k m y w o r d . T h e y w o u l d s a y w e o f w h i c h n o - o n e is a w a r e ) , p e o p l e t h i n k a n d act.
m a d e i t h a p p e n ! I r o n i c , i s n ' t it?" And by responding to that picture of reality, they
" I t c e r t a i n l y is." m a k e it so: it b e c o m e s ' r e a l i n its c o n s e -
"So, n o - o n e i n o u r b u s i n e s s l i k e s t o p r e p a r e q u e n c e s ' . 16 A n d , w h a t is m o r e , w h e n p e o p l e res-
accounts which make an organization look bad." pond to that picture, and the consequences
"Do you feel right about that? I mean, I see o c c u r , t h e y s e e it as p r o o f o f o u r h a v i n g c o r r e c t l y
n o w t h a t t h e r e is n o t r u t h , as s u c h , b u t , u h m , as c o n v e y e d r e a l i t y . C l e v e r , i s n ' t it? T h a t is h o w
y o u said, s t r e t c h i n g t h e t r u t h . . . " society works."
"Look, many tribes have witchdoctors. They "So, y o u ' r e s a y i n g t h a t a n y o n e c h a r g e d w i t h
can will a man to death. Do you want us doing the responsibility of providing these pictures,
that?" has a lot of power, because people will respond
"No, of course not... Gosh, you have so much to what they draw-up?"
power... You know, now that I am beginning to " T h a t is so."
s e e it, I d o n ' t u n d e r s t a n d h o w all t h i s h a s n o t "It s e e m s t o m e , t h a t y o u r p o w e r is a h i d d e n
c o m e o u t . I m e a n , I ' m t h i n k i n g a b o u t all s o r t s o f p o w e r , b e c a u s e p e o p l e o n l y t h i n k o f y o u as com-
things: what we consider to be 'objective', what m u n i c a t i n g reality, but in communicating real-
we consider to be 'rational', the way we think, ity, y o u construct r e a l i t y . "
t h e w a y w e act, o u r t h e o r i e s , t h e w a y o u r s o c i e t y " T h a t ' s r i g h t . A h i d d e n p o w e r . A n d all t h e
is s t r u c t u r e d - - it's n o t r e a l i n t h e w a y w e t h i n k m o r e p o t e n t f o r it. T h i s m a y s o u n d silly t o y o u ,
it is. It's all j u s t a n idea, i s n ' t it?" but most of us are only just beginning to realize
" T h a t ' s r i g h t m y b o y . J u s t a n idea. A n d b y a c t - ourselves that we have this power. We always
i n g i n a c c o r d a n c e w i t h it, w e m a k e it so! " I f m e n t h o u g h t o f o u r s e l v e s as b e i n g t e c h n i c a l p e o p l e .
d e f i n e t h i n g s as r e a l , t h e y a r e r e a l i n t h e i r c o n s e - B u t it h a s b e e n b e c o m i n g c l e a r lately, t h a t t h e r e
quences."14 is m u c h m o r e t o o u r w o r k . M u c h m o r e . . . "
We create a picture of an organization, or the

NOTES

1 The process by which society is created is subtle. If individuals were to be serf-consciously aware of the constructed nature
of society, and the part they play in creating and sustaining it, society would not function effectively.
Every word, gesture and deed on the part of an individual or group is either, in conformity with social mores and thus con-
tributes to the maintenance of society as it is, or is deviant and will be tolerated only in small degree, unless the individual
or group can change society - - the latter is the story of minority voices and groups.
Contrary to commonsense intuitions, reality does not concretely exist independently of the concepts, norms, language and
behaviour of people. People create society, but at the same time, their concepts, norms, language and behaviour, become in-
stitutionalized. By becoming thus objectified, society acquires a semblance of concreteness. Indeed it is more than a
semblance, as anyone who breaks the rules of social convention quickly learns.
Many readers of this paper will have already lost patience with it, because it does not accord with the norms of academic
reality. Every properly socialized person responds to deviance in this way. Thus, society is stabilized, and protected from
change - - but, in this way also, many interesting things slip past our notice... By taking for granted those things which others
take for granted, we fail to understand how those things arise, and how they are sustained, through being taken for granted
and thereby forming the basis for thought and action. By taking for granted, and rigorously studying, things as they are, one
merely builds on lay conceptions, becoming an expert of description, and a collector of "facts". But too close an attention to
the "facts" leaves unquestioned how the facts arise - - it leaves us bereft of deep explanation.
Academic discourse frequently functions as a stabilizer of society. Conferred with authority and legitimacy by a social
ideology which holds that academics engage in expert and free thought, research of sociai "facts" plays the important role in
society of objectifying, normalizing, and so perpetuating those "facts" and the interests and power relations which give rise
to them.
258 RUTH D. HINES

The "facis" of society such as "crime", "profit", "madness", "marriage", "organizations", "sexuality" and "assets" are generally
taken for granted, but authors such as Berger & Luckmann ( 1966 ), Berger & Kellner (1964), Bittner (1965), Foucault ( 1967,
1977, 1981), Garfinkel (1967), and Giddens (1976, 1984), whilst viewing social reality from different theoretical and
methodological perspectives, all recognize that the facts of society do not pre-exist social practices, but are created and sus-
tained by social action.
Crime, profit, madness, and so on, are socially constructed categories - - they are definitions of reality or "ways of seeing".
Social p o w e r accrues to those w h o can influence conceptions of reality, since by influencing conceptions of reality - - what
is considered to be "rational", "moral", "true", "efficient" - - one influences social action.
Hines ( 1986a, 1987) shows h o w mainstream financial accounting research is based on taken-for-granted commonsense
conceptions and assumptions, which mitigate against the questioning of h o w social reality arises and is maintained and legiti-
mized, and which therefore obscure the roles that financial accounting plays in the creation and maintenance of society.
Mainstream financial accounting research represents a '~¢ay of seeing" similar to the commonsense '~zeay of seeing", but in
the words of Poggi (1965), a way of seeing is also "a way of not seeing".
It is necessary to breach a way of seeing or worldview, in order to create a new way of seeing (see especially Handel [ 1982,
pp. 55--77 ] and Mehan & Wood [ 1975, pp. 3-33]). Castaneda's master, the sorcerer Don Juan, refers to breaching a worldview
as "stopping the world". "Stopping the world", or dissolving our taken-for-granted conception of reality, and thereby seeing
that it is essentially arbitrary and constructed rather than "true", is the first step to gaining a new reality or a new way of
"seeing" (Castaneda, 1971, 1974). It was some years before Castaneda began to be able to stop his world, and to see h o w that
world which he had taken for granted and had seen as pre-existing his own and others' action, was socially constructed by
the thought and action of himself and others. He was then empowered to experience a new reality, that of Don Juan.
A touching aspect of Castaneda's early apprenticeship to Don Juan, is his dedication to pursuing what he sees as rigorous
research procedures. Eventually Castaneda comes to recognize that these procedures merely serve to sustain his taken-for-
granted world, and to prevent him from discovering an alternative world.
Whilst it is recognized in some management accounting research and organization behaviour research, that accounting
practices, as well as communicating reality, also play a part in creating, sustaining and changing social reality, this view of
accounting is not "seen" in mainstream financial accounting research. The present paper represents an attempt to momentar-
ily breach or "stop the world" of mainstream financial accounting research.
2 Reality does not exist independently of accounts of it. As Meyer ( 1983, p.236 ) states, an organization, "is in fact a sprawling,
complex institution, with multiple purposes and disconnected programs (technologies), of unknown production functions,
of competing and autonomous subordinate units". But accounting imposes a conceptual boundary on it: "the accountants
settle the matter by definition, and acquiring boundaries means, for an organization, acquiring reality" (p. 236).
Hines (1986b) shows h o w the financial accounts of an organization do not merely describe, or communicate information
about, an organization, but h o w they also play a part in the construction of the organization, by defining its boundaries. An
organization is not a concrete thing, but a set of interrelationships, and if it is to exist, then it must s o m e h o w be bounded or
defined. Financial accounting controversies are controversies about h o w to define the organization. For example, what
should "assets" and "liabilities" include/exclude: at what point does an asset/liability become so intangible/uncertainfunen-
forceable/unldentifiable/non-severable, etc., that is ceases to be considered to be a "part" of an organization? The answers to
questions such as these, define the "size", "health", "structure" and "performance", in other words, the reality of an organiza-
tion.
3 When the constructed nature of social reality is recognized, it becomes readily understandable why, for example, the Finan-
cial Accounting Standards Board (FASB, 1984) was unable, in its Conceptual Framework, to divorce measurement from
recognition. It is difficult to "measure" something, before it has been made real, that is, "realized"!
4 Gribbin (1985) elaborates h o w subatomic particles, and other conceptions of physical reality, are the artefact of observa-
tion and measurement procedures:
The only things we know about the quantum world are the result of e x p e r i m e n t s . . . The electron is created by our pro-
cess of experimental probing. The story stresses the fundamental axioms of quantum theory, that no elementary
phenomenon is a p h e n o m e n o n until it is a recorded phenomenon. And the process of recording can play strange tricks
with our everyday concept of reality (pp. 209-210).
In the 1930s physicists were intrigued by the prediction of another new particle, the neutrino, required in order to exp-
lain the subleties of the spin interactions of some radioactive decays. "I am not much impressed by the neutrino theory"
said Eddington, "l do not believe in neutrinos". But "dare l say that experimental physicists will not have sufficient in-
genuity to make neutrinos?"
Since then, neutrinos have indeed been "discovered" in three different varieties... Can Eddington's doubts really he taken
at face value? Is it possible that the nucleus, the positron and the neutrino did not exist until experimenters discovered
the right sort of chisel with which to reveal their form? Such speculations strike at the roots of sanity, let alone our concept
of reality. But they are quite sensible questions to ask in the quantum world. If we follow the quantum recipe book cor-
 FINANCIAL ACCOUNTING AND REALITY 259

rectly, we can perform an experiment that produces a set of pointer readings that we interpret as indicating the existence
of a certain kind of particle. Almost every time we follow the same recipe, we get the same set of pointer readings. But
the interpretation in terms of particles is all in the mind, and may be no more than a consistent delusion (p. 162).
s See, for example, Tucker ( 1981 ). For different accepted versions of the Cuban Missile Crisis, see Allison (1969).
6 It is n o w acknowledged by philosophers of science that predictive success of a theory does not necessarily infer the "truth"
of a theory. Many theories in the history of science which were (are) empirically successful, have been established to be non-
referential, that is, not descriptively valid, with respect to their central explanatory concepts. These include the humoral
theory of medicine, the effiuvial theory of static electricity, the caloric theory of heat, the vibratory theory of heat, the theory
of circular inertia, and theories of spontaneous generation (see Laudan, 1981 and 1984, for many others).
Conversely, many theories which are presently considered to be genuinely referential theories, were previously rejected,
because of their apparent empirical failure. For example, the chemical atomic theory in the eighteenth century was so unsuc-
cessful, that most chemists abandoned it. Wegener's theory of plate tectonics, published at the beginning of this century, was
ridiculed on the basis of its empirical support, until the 1960s, w h e n it became geological orthodoxy.
Furthermore, according to the formal rules of logic, the predictive success of a theory does not logically infer the descrip-
tive validity of a theory (Hesse, 1975). For example, alternative theories can predict equally well. Laudan (1977) discusses
many cases of scientific theories which successfully predicted, but were eventually determined not to be descriptively valid.
Feyerabend ( 1978 ), Kuhn (1962) and Laudan ( 1981, 1984 ) illustrate by reference to many episodes in science, that scien-
tific observations and theories, are a product of a researcher's expectations, sensory impressions, cognitive processes,
research methods, ideological prejudices, epistemological assumptions, categories and assumptions embedded in their lan-
guage, and auxiliary theories such as measurement theories. Gribbin (1985) and Pickering ( 1984 ) illustrate this in relation
to atoms and quarks respectively.
A growing literature describes the processes by which theories and knowledge are socially constructed and negotiated, for
example, [Gilbert ( 1976 ), Latour & Woolgar (1979), Myers (1985) and Schuster ( 1984 )].
Foucault ( 1967, 1977, 1980) goes even further, to show h o w socially constructed "truth" and "knowledge", are the pro-
duct of interests and p o w e r relations [see also Dreyfus & Rabinow ( 1982 ) and Racevskis ( 1983 )].
From the perspective of Foucault's writings, it may be suggested that it is not merely chance that has determined the pre-
eminence of positivist financial accounting research, such as capital market research and agency theory. Since this type of re-
search uncritically and unreflectively investigates "what is", without questioning h o w the status quo arose, and is ongoingly
sustained and legitimated, such research legitimizes, rather than threatens, the social, political and economic interests vested
in the status quo. It is thus the type of research that will be encouraged, admired and funded by those interests.
7 The themes in this paper emphasize the constructionist view of society, because it has not generally been acknowledged
in mainstream financial accounting research, that social reality, whilst tangibly pre-existing the individual, arises interactively
with social action. It is therefore in an effort to partially redress this imbalance, that the constructed nature of social reality
has been emphasized in this paper.
Various critiques have been made of the constructionist viewpoint for its neglect of social structure (for example Giddens,
1976 ). However, the present paper, whilst emphasizing that people construct social relations and social structure in an on-
going fashion, also recognizes that social structures, such as organizations, pre-exist the individual. As the title of this paper
reflects, social reality exists tangibly, and accounting practices communicate that reality, but in so doing, such practices play
a part in creating, shaping and changing, that is, in constructing reality. Thus the overall theoretical position of this paper cor-
responds more to the position of Berger & Luckmann ( 1 9 6 6 ) or Giddens (1984) [although these are not unproblematic per-
spectives - - see, for example, Smith & Turner ( 1986)].
8 Beaver ( 1973, p. 51 ).

Holthausen & Leftwich ( 1983, p. 81 ).

~oWhen accounting is seen as merely reflecting or communicating or monitoring the characteristics of organizations, then
many accounting methods are seen as "cosmetic" or "arbitrary" and it is supposed that investors can "see through" these
methods to the "real" company. Indeed early efficient markets research tested for those methods and standards which were
"cosmetic". Moreover, certain accounting changes and standards were held as being "cosmetic", and market efficiency was
tested on the basis of this maintained assumption. However, no clear or consistent picture emerged from this research as to
which methods, issues or standards are indeed "cosmetic" i.e. do not have "information content" about reality (Lev & Ohlson
( 1982 ), Hines ( 1984 ) ). This state of affairs ceases to be surprising or to seem anomalous, w h e n it is acknowledged that reality
does not pre-exist financial accounting practice, but rather arises reflexively and interactively with inter alia financial
accounting practices.
Such a recognition also throws light on why companies have so strongly opposed apparently "cosmetic" accounting stand°
ards, and why their managements have gone to such lengths in order to mitigate the effects of them. It is not necessarily that
260 RUTH D. HINES

m a n a g e m e n t s do not believe or do not understand the Efficient Market Hypothesis, it is rather that they do not think of their
company's "size", "performance", "stability", etc. as existing concretely and independently of financial accounting practices,
so that sophisticated investors can "see through" accounting n u m b e r s to it. For this reason m a n a g e m e n t s often go to expen-
sive lengths, in order to manage their company's appearance [see Wyatt ( 1 9 8 3 ) for s o m e of these costly circumventions of
accounting standards].
i i For example, the stock market does not appear to react to replacement cost disclosures, but it appears that it may react to
depreciation changes (see Lev & Ohlson, 1982).
2 "A grequent topic of debate in the literature is the impact of accounting research on the accounting profession; the general
conclusion is that the direct impact has been minimal" (Ball & Foster, 1982, p. 166).
t3 The accounting profession in Europe, the United States and Australia, is increasingly attracting investigation and govern-
mental intervention. The following statement was made by Arthur M. Wood, chairman of the Public Oversight Board of the
Securities and Exchange Commission practice section of the AICPA division for CPA firms:
This is a critical time in the history of the accounting profession. To believe that the crisis exists because of the hearings
being held by the House Subcommittee on Oversight and Investigations is in m y estimation a serious error. Congressman
Dingelrs hearings are a symptom, not a cause. The cause of this crisis is in fact that investors and depositors are losing faith
in the ability of the accounting profession to perform the job that has historically been its unique function: assuring the
integrity of the financial information on w h i c h our capitalistic society d e p e n d s ( From "Statements in Quotes",Journal o f
Accountancy(August, 1985, p. 142)).
14 Handel ( 1982, p. 36), first stated by W. I. Thomas in the 1930s. Handel ( 1 9 8 2 ) and Mehan & W o o d ( 1 9 7 5 ) elaborate h o w
assumptions about reality predispose one to interpreting events in h a r m o n y with those assumptions. W h e n acted upon, these
assumptions perpetuate or create the conditions that one already assumed to have existed.
~s See Miller ( 1 9 8 6 ) for a review of Fourquet's La Comptes de la Puissance (Encres, Editions Recherches, 1980), w h i c h
shows h o w national accounts are instrumental in shaping economic behaviour.
16 See Zeff ( 1 9 7 8 ) for discussion of the power struggles w h i c h have surrounded a n u m b e r of U.S. accounting standards, as
various groups have sought to impose their definition of reality, and the consequences of it, u p o n society.

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